Richard Wilson is founder of Wilson Holding Company and the CEO of The Miami Family Office, a single family office with $500M in assets, he runs the largest family office association globally, and is a bestselling author of The Single Family Office Book.

Wikinvest Wire

NIR Group Probe

NIR Group Investigated For Allegedly Giving Kickbacks

Another investigation into a hedge fund is taking place over suspicions that the fund paid kickbacks. U.S. regulators are looking into whether NIR Group's Corey Ribotsky (pictured left) paid others kickbacks to boost the value of their investments. This is a serious charge that authorities have been looking since 2009; NIR posted 8 years of positive returns on its biggest fund since 2001 raising questions.

U.S. authorities have been investigating the company since last year on whether managing member Corey Ribotsky defrauded investors about their returns and the holdings of his various funds, according to the paper.

Ribotsky managed more than $780 million in hedge fund assets last year. The company reported eight years of positive returns in its biggest fund starting 2001, the paper said.NIR invests its hedge-fund assets mainly in small public companies through privately negotiated deals and mostly receives notes that could be converted into stock at a discounted rate, the article said.

The people told the paper that the authorities are investigating whether NIR valued certain notes at a higher level than the underlying value of the companies'.

Investigators are trying to ascertain whether people with financial ties to outside companies got kickbacks in exchange for helping NIR inflate values of its investments, the paper added. Source

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